Tax on catering services


This query is : Resolved 

09 April 2013 Sir,A manufacturing company is providing food to the employees through canteen.He charged the bill as follows:
Food- 12,000.00
Service tax @ (12.36% * 50%)- 741.60
Gross- 12,741.60
Add:VAT@ 14% (on 12,741.60)- 1,783.82
Total- 14,525.42
Is he correct in doing so? Otherwise how much service tax & VAT company has to pay?

29 April 2013 Yes..He is correct in doing so..VAT is always levied on the final amount.I got it.


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